Key facts:
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Mark Cuban is the owner of the NBA team, Dallas Mavericks, and an investor in cryptocurrencies.
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For Cuban, smart contracts will play a fundamental role in the networks of the future.
In the middle of the “winter” of the cryptocurrency market, with all the markers in red, the investor Mark Cuban has commented that the momentum that cryptocurrencies have experienced is very similar to that experienced by the Internet in the early 2000s. For him, only those networks that actually offer something useful are destined to stay.
According to the current owner of the NBA’s Dallas Mavericks, many cryptocurrency networks have focused on copying what others already offer. For example, many seek to monopolize the market for tokens no fungibles (NFT)of the decentralized finance (DeFi) or play-to-earn (P2E) games,
The businessman is convinced, as he explained in a Twitter hiloregarding what cryptocurrency networks will find an important market niche by offering business solutions. “When companies can use smart contracts to gain competitive advantage, they will,” Cuban says, adding, “blockchains that realize this will survive.”
For Cuban, smart contracts would play a key role. These are algorithms that run directly on top of a cryptocurrency network through what is known as a virtual machine. Current networks that facilitate the execution of smart contracts include Solana, BNB Chain, Terra, Cardano, and Ethereum, among others.
The employer considers important the development of SaaS (“Software as a Service”, for its acronym in English) where all operational load falls entirely on a cryptocurrency network decentralized and not on centralized servers.
Cuban closes the thread by noting that “we don’t need NFT or DeFi on every blockchain. We don’t need bridges to move NFTs between chains”, this in relation to the recent boom experienced by this type of product (although, according to some data collected by CriptoNoticias, the market for collectible tokens is not going through its best moment)
A good example of what Cuban points out is what happens with calls Ethereum Killer(Ethereum killers) networks that seek to dethrone the second largest currency in market capitalization, copying its operation (Virtual Machine and smart contracts). However, they end up developing their own problems, as is the case with Solana and the saturations.
The potential that Mark Cuban sees in Bitcoin and Ethereum
Cuban maintains a fairly favorable stance towards Bitcoin and Ethereum. In 2021, the investor revealed that his portfolio was made up of 60% bitcoin and 30% ether (Ethereum cryptocurrency). It has even invested in the Ethereum sidechain, Polygon.
The enthusiasm for these cryptocurrencies has even led Cuban to compare their returns with financial assets such as the S&P500 index, which has underperformed considerably over the last decade.
